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Karat Packaging (KRT) guidance and outlook
Karat Packaging (KRT) lowered its guidance on Nov 5, 2026: Gross margin 33%–35% for FY2026. Karat Packaging's 10-Q filed Nov 6, 2026 makes 19 forward-looking statements.
Guidance and outlook
Latest guidance
| Metric | Period | Range | Change |
|---|---|---|---|
| Gross margin | FY2026 | 33%–35% | lowered |
From the earnings release filed Nov 5, 2026 (8-K on EDGAR).
Forward-looking statements, 10-Q filed Nov 6, 2026
- • our ability to accurately forecast demand for our products or our results of operations;
- We recently entered into a 50-month lease agreement for a new distribution center in Orlando, Florida, which is expected to be fully operational in November 2026.
- In April 2026, we submitted refund claims totaling $25.8 million eligible for processing at time of filing, and expect to submit the remaining eligible claims once CBP opens the filing window.
- • On November 3, 2026, our Board of Directors declared a regular quarterly cash dividend of $0.47 per share on our common stock, which will be paid on or about November 27, 2026 to shareholders of record at the close of business on November 19, 2026.
- The following trends have contributed to the results of our operations, and we anticipate that they will continue to affect our future results:
- There is a clear growing preference for delivery and take-out, and we expect this trend to continue positively, influencing our operating results, as more customers will need packaging and containers to support the rising demand from food delivery and take-out consumers.
- We believe this trend will have a positive long-lasting impact on our results of operations, as we expect there will be an increased demand for eco-friendly and compostable single-use disposable products.
- Elevated ocean freight rates could pressure our gross margin, and if we raise our prices, dampen the demand for our products.
- We believe this trend will have either a positive or a negative impact on our results of operations, depending on whether we are able to continue to strengthen our global supply chain, whether any previously imposed tariffs are removed and whether we can implement procedures to mitigate the impact from the tariffs.
- We believe price fluctuations and the availability of raw materials will have either a positive or a negative impact on our results of operations in the future, depending on whether raw material costs increase or decrease, whether we can successfully implement price adjustments to maintain gross margin and whether we can effectively realign our global supply chain to mitigate disruptions and support product…
- We believe this trend will have either a positive or a negative impact on our results of operations, depending on whether we are able to manage our global supply chain effectively, including the accurate forecast of demand, the successful procurement and transportation of raw materials and products, and the effective management of our inventory, production and distribution.
- Our ability to generate positive cash flow from operations in the future will be, at least in part, dependent on global economic conditions and our ability to navigate the challenging macro environment at times.
Karat Packaging's latest quarter
Karat Packaging, Q3 2026: revenue $135M (+8% year over year), operating margin 3.6%, net earnings $4.4M, operating cash flow $9.7M. The chart follows the revenue to costs, profit and cash.
Questions
Did Karat Packaging raise or lower its guidance?
Karat Packaging (KRT) lowered its guidance on Nov 5, 2026: Gross margin 33%–35% for FY2026.
What does Karat Packaging expect?
• our ability to accurately forecast demand for our products or our results of operations; We recently entered into a 50-month lease agreement for a new distribution center in Orlando, Florida, which is expected to be fully operational in November 2026. In April 2026, we submitted refund claims totaling $25.8 million eligible for processing at time of filing, and expect to submit the remaining eligible claims once CBP opens the filing window.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.